The Role of Small Business in Economic Development of the United States From the End of the Korean War 1. Present The U. S. Small Business Administration. Federal Economic Development Programs. A. Economic Development Administration. As appropriately suggested by Glasmeier and Farrigan 2. President Johnson planned to group together distressed counties and communities in economically viable development districts, focusing planning and assistance on the area as a whole as well as on individual counties and towns. Further reading. Bartlett, Randy February 2013. A Practitioners Guide To Business Analytics Using Data Analysis Tools to Improve Your Organizations Decision. The details of the proposal were laid out in PWEDA. The PWEDA would be a permanent program to provide grants for public works and development facilities, other financial assistance, and the planning and coordination needed to alleviate conditions of substantial and persistent unemployment and underemployment in economically depressed areas and regions. The bill contained provisions for 1 the majority of funding for grants for construction of public works projects to attract industry 2 loans mainly for construction of industrial plants 3 the guarantee of working capital loans by the government and help paying interest on certain loans for private firms. The primary and secondary objectives of the EDA were as follows i. Develop%20Project%20Management%20Plan.png' alt='Business Development Tools And Techniques Pdf' title='Business Development Tools And Techniques Pdf' />Primary Objectivesa Self sustained economic development EDA was to provide stimulus for self sustained growth rather than effecting long term income transfers to the unemployed. This followed the concept of the agency that it could correct the negative effects of market forces and that prosperity was a desirable political and economic goal. Increased planning capacity EDAs goal was to promote sound, long range economic planning at all levels of government necessary to aid in infrastructure development according to the act, this required the creation of regional commissions, development districts, a national advisory board, planning grants, and technical assistance, as well as community designed overall economic development plans. Rural focus of aid although not explicitly stated, the political perspective of urban ills presented in the act was that they were largely a spin off of the deterioration of rural life and the resulting rural to urban migration. Therefore, a major objective of the EDA was to curtail rural emigration. Secondary Objectivesa Maximization of national economic efficiency. The achievement of equity as compared to other regions through economic growth. We are uncovering better ways of developing software by doing it and helping others do it. These are our values and principles. The Role of Small Business in Economic Development of the United States From the End of the Korean War 1953 to the Present. Relief of effects of cyclical economic distress. Geographic dispersion of assistance limited to 1. EDA expenditures per state. B. The Small Business Administration. Notwithstanding a nearly 2. EDA accomplishment did not acknowledge small business. Plain White T All That We Needed Rar. Some would suggest that this new EDA law did not want to infringe on the jurisdiction of the Small Business Administration, but how can one think of maximizing national economic efficiency without a primary role for small businessesExcluded from consideration in the 1. EDA Act was the question of why small businesses are so vital to the well being of this nations economic fabric. During World Wars I and II and the Korean War, the small business community rose to the fight. Small businesses kept this nation at the doorstep of victory. If America will save the small businessmen, the small businessmen will save America. Small business saved America and America responded by creating the Small Business Act of 1. The Korean War ended in 1. President Eisenhower signed into law legislation that created the Small Business Administration SBA on July 3. These two very separate events in the archives of American History were very much connected to each other. SBA became the first peacetime Agency of government whose purpose is to provide assistance to all aspects of small business. Passed in 1. 95. 3, the Small Business Act established the SBA with the mandate to encourage and develop small business growth, and to aid minorities and other disadvantaged people in securing loans and learning management techniques. The essence of the American economic system of private enterprise is free competition, the act reads, Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to economic well being but to the security of this Nation. Congress adopted the Small Business Act during the Eisenhower Administration, a time of economic expansion. Millions of G. I. Army in 1. Factories were no longer producing for the war effort, and many of the returning G. I. s, either unable or unwilling to find work in large industrial firms, sought out their own business ventures. With the help of families and personal loans, businesses such as camera stores, food services, and car dealerships sprang up across the country. Still, large firms had tremendous advantages over smaller start ups, and Congress created the SBA to help even the playing field. Small businesses currently represent 9. United States and they generate nearly 6. Moreover, small businesses are generally considered to be the first line of employment and thus the initial training grounds for this nations workforce. There are twenty nine million small businesses in the United States. The SBA estimates that just over half of all employees in the U. S. work for a small firm, and that small business employers provide approximately 4. Ninety seven percent of all exporters are small business owners, comprising 2. The most powerful statistic, however, is that 6. This number fluctuates when some small businesses grow enough to become classified as large businesses, and when new small businesses are created. From 1. 99. 9 to 2. By 2. 01. 0, small businesses account for three quarters of net new jobs in the United States. Small businesses have a long history of being this nations primary job creator, but as outlined above in the history of this nations economic policy formation, small businesses were not at the forefront in this nations policy manpower formation. The congressional policy that the government should aid, counsel, assistthe interest of small business concerns in order to preserve competitive enterprise., in the 1. Small Business Act carried very little potency as it can be seen in the creation of the Labor Surplus area program. C. Labor Surplus Areas. According to at least one source, the concept of channeling Federal procurement contracts into high unemployment areas can be traced back to the early 1. During the Korean conflict, there was concern among Government officials that high unemployment rates and low utilization of plants and equipment in some areas would lead to erosion of the mobilization base and adversely affect the Nations production capability. The Office of Defense Mobilization studied this problem and in February 1. Defense Manpower Policy Number 4 DMP 4, implementing the idea of directing Federal procurement contracts to employers in labor surplus areas. What are labor surplus areasLabor surplus areas are designated by the United States Department of Labor as having high unemployment. Employers located in these areas can be given preferences in bidding on federal procurement contracts. The purpose in providing such preferences is to help direct the governments procurement dollars into areas where people are in the most severe economic need.